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Equal Access to Investments: At Whose Expense?

Published onAug 07, 2022
Equal Access to Investments: At Whose Expense?

21 Wake Forest J. Bus. & Intell. Prop. L. 431

On June 12, 2020, Alexander E. Kearns “rode to a railroad crossing
on his bicycle and ran in front of an incoming train, killing himself.”
In the note he left for his family, he stated, “How was a 20-year-old with
no income able to get assigned a million dollars’ worth of leverage?”
Kearns’ Robinhood account showed a loss of $730,165.72 at the time
of his death, which did not reflect the reality of his financial position.
Aside from the misleading nature of Robinhood’s communications to
Kearns, the bigger issue was how an amateur trader—with very little
background in investing—was allowed to trade high-risk options on a
huge margin.

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